US Feature Phone Market Stages Comeback as Gen Z, Millennials Advocate Digital Detox

  • The US feature phone market is more crowded and competitive now as OEMs enter agreements with carriers. 
  • Feature phone sales are forecast to reach 2.8 million in 2023 with stable sales continuing in the near term. 
  • New hardware configurations like eSIM or NFC can make devices more relevant for today’s consumers. 

Feature phones have made a resurgence due to digital detox and Gen Z/millennials  

Feature phones in the US market have made a resurgence as Gen Z and millennials are advocating for digital detoxes due to the mental health concerns brought on by smartphones and social media. Hashtags like #bringbackfliphones on TikTok have garnered millions of views leading to the increased adoption of feature phones by younger consumers looking to adhere to movements like digital detoxing, minimalist lifestyles and unplugging. Given the relatively cheap price point of feature phones ($20-$50 with a prepaid carrier and $50-$100 unlocked), more people are trying out these devices and sharing their experiences on social media.  

The market is more crowded now, TCL and HMD are leading but competition from Schok, Sonim, and white-label makers like Tinno are entering agreements with carriers 

Smartphones were widely adopted almost instantly when they arrived. Due to this, the US feature phone market shrank significantly over the past 10 years. Currently, the feature phone market contributes to only a little more than a 2% share of overall handset sales in the US. Among the players catering to this segment of the market, TCL, which manufactures feature phones for major carriers in both branded and white-label capacities, leads the pack with a 43% share due to its strong presence on carrier channels. HMD ranks second with a 26% share, while other smaller players make up for the rest of the market. 

Additionally, carrier and OEM tie-ups play an important role in the dynamics. The big three US carriers – AT&T, Verizon and T-Mobile – are exploring different feature phone OEM options due to which the US feature phone market has grown more crowded lately, especially with carriers moving away from TCL devices and trying out smaller OEMs instead, like Tinno and FIH which have manufactured devices for AT&T’s white-labeled feature phones. Sonim and Kyocera, which provide ruggedized devices, are Verizon’s feature phone brands, while Schok and hot pepper are T-Mobile’s.  US feature phone marketFeature phone sales are forecast to reach 2.8 million in 2023 with continued stable sales in the near term as niche demand drivers maintain sales

Feature phones still hold their place in the market and are likely to see consistent shipments, helped by their affordability and durability to suit specific use cases. Although the growth in numbers may not be huge, the demand from consumers looking for a feature phone as a digital detox mechanism will continue. Additionally, B2B sales may drive some demand as feature phones simplify costs for businesses. Furthermore, tourists and other consumers needing a cheap disposable feature phone will also continue to keep sales stable.

New hardware configurations like eSIM or NFC can make devices more relevant for modern consumers wishing to simplify their tech gadgets but still interact seamlessly in the digital world

There is a consumer base looking for devices that are minimalistic but also have features that are relevant to staying connected in today’s world. The design and specifications of feature phones have not changed much over the last few years. This is one of the factors that keep consumers from purchasing a feature phone. The addition of some new hardware configurations and features that are abreast with the current trends while still maintaining the simplicity of usage may open more gates for the growth of feature phones. NFC is one such feature. NFC can enable payments, home automation, quick pairing, and make public transport access more convenient for users. Similarly, eSIMs may also be a great hardware integration as it may attract consumers to adopt a feature phone as a companion device that they can easily switch to from their main device in situations where they do not want to bring out their expensive smartphone. Adding these attributes would help make feature phones more relevant for day-to-day use.

See the full report below for more information:


US Feature Phone Trends and Outlook in the Age of Smartphones

The US feature phone market has seen a recent resurgence with Gen Z/Millennials advocating for digital detoxes due to mental health concerns. While TCL and HMD remain the dominant OEMs in the US, challenger brands are making the market more crowded. Feature phones will remain an important part of the US handset market for years to come as they continue to solve for niche needs that smartphones cannot address.

Number of Pages: 18

  • Key Takeaways
  • Current Market Dynamics
    • Feature Phone Volumes by Year
    • Current Market Drivers
    • Market Share by OEM
    • Postpaid and Prepaid Market Share by OEM
  • Specification Analysis
    • Current Feature Phone Specifications and Market Innovations
  • Feature Phone Outlook
    • Market Forecast until 2027
    • Future Trends and Specifications

Contact Us Read More


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Mexico Feature Phone Sales Beat Overall Market Trend

Mexico’s mobile handset market, the second biggest in Latin America, reported a 14% YoY sales decline in Q3 2022. But the country’s feature phone sales volume more than doubled YoY in Q2 and Q3, recovering to pre-COVID levels. This rise in feature phone sales can be attributed to the re-entry of i-mobile and Nokia into the market with new devices at attractive price points. BLU, Alcatel, Senwa and Zuum are the leading feature phone players in the Mexican market and together account for more than 45% share.

Mexico Feature Phone Sales Market Share
Source: Mexico Model Sales Tracker, Q3 2022


In Q3 2022, Alcatel and BLU were the biggest losers YoY. Surprisingly, Alcatel reduced its portfolio to only one model –1066. BLU’s only-open-channel strategy ended up hitting its sales. Nokia managed to capture the space thus created with its 106 and 105 2021 models in the <491 Mexican pesos ($25) retail price band.

Senwa saw a mixed performance in Q3 2022. Its Klick series softened the impact of competition in the <491 Mexican pesos retail price band, driven by its performance in the operator channel. On the other hand, devices from the >491 Mexican pesos band were not able to sell as expected. The customer perception of Senwa feature phones being low-priced is affecting these devices on the demand side.

Local king Zuum was affected by model cannibalization. Newest models like the Brix R II and Fun R series continued with strong sales momentum. But the Brix series suffered the most, leading to the brand seeing an overall YoY decline. The latest models show just a 196 Mexican pesos ($10) retail price increase over the previous versions.

The “Others” category saw a strong performance in Q3 2022 due to Nokia, Doppio and Bmobile’s aggressive sell-in volume during the quarter, taking advantage of lower import costs due to a depreciating currency.

Competitiveness is the main driver for this feature phone market which is flat compared to 2019 but has managed to resist the weakness in the country’s overall handset market. There are market trends like smartphone bundles and financing plans that indicate a bleak future for feature phones in Mexico.

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itel a Preferred Brand in Sub-INR 8K Segment in India, Says Survey

  • Among the top three sub-INR 8,000 (sub-$100 approximately) brands in terms of ownership, itel users recommend their brand the most when it comes to value for money, ease of use and trust in the brand.
  • Similarly, itel users lead when it comes to rating the current mobile phone brand as the preferred brand for their next purchase in terms of brand trust, after-sales service, durability and localized marketing communications.
  • More than half of the current itel mobile users had itel as their first mobile phone.
  • itel users are also the least dissatisfied with their current mobile phones compared to other top brands in the sub-INR 8,000 (sub-$100 approximately) segment.


London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – December 19, 2022

TRANSSION Holdings’ itel has emerged as a preferred brand in the sub-INR 8,000 (sub-$100 approximately) segment in India by reporting the biggest proportion of repeat users among first-time handset buyers in the segment, according to a consumer survey conducted by Counterpoint Research recently. As many as 55% of the respondents who started their mobile ownership journey with itel, have bought the brand’s device again. itel is followed by Samsung and Lava here.

Among the top three brands in the sub-INR 8,000 segment in terms of current mobile phone ownership, itel users showed the least dissatisfaction (<1%) with their current handsets. Besides, users rated itel on top as their next preferred brand on the parameters of brand trust, pricing, after-sales services, appearance, and durability. Based on the overall experience, 76% of the current itel users would recommend the brand to others. However, in terms of current mobile phone ownership, itel captured the third spot in the sub-INR 8,000 segment.

The offline consumer study was performed across 23 cities in India, mostly covering Tier 2 and Tier 3 cities, along with Tier 1 cities, from all zones. The focus of the study was to understand past as well as current mobile ownership, including brand awareness, brand preference and brand opinion, of feature phone and entry-level smartphone users from the sub-INR 8,000  price segment.

Top 5 Factors for Consumers Choosing itel as Current Mobile Brand

Counterpoint Research_Top 5 Factors for Consumers Choosing itel as Current Mobile Brand

Source: India Mobile Phone Consumer Study in Sub-INR 8,000 Price Segment, November 2022


Counterpoint Research Analyst Arushi Chawla said, “The sub-INR 8,000 price segment is an important category, with over 370 million users relying on feature phones and entry-level smartphones in this segment. This is also the segment where most first-time mobile phone users start their digital journey. Users from this price segment require support from mobile brands in terms of value for money, features and reliability. itel is among the top players here, with a presence in both feature phone and entry-level smartphone segments. Users have chosen itel for their trust in the brand, easy availability and affordability, and this has been reflected in the brand’s efforts in the past few years to serve the user base in the sub-INR 8,000 segment. Clearly, itel is also playing a pivotal role in driving the digital progression in India by being a preferred brand for consumers transitioning from 2G to 4G”

Top 5 Factors for Consumers would Choose itel for Next Mobile Brand

Counterpoint Research_Top 5 Factors for Consumers would Choose itel for Next Mobile Brand

Source: India Mobile Phone Consumer Study in Sub-INR 8,000 Price Segment, November 2022

Chawla added, “Unlike other segments, the sub-INR 8,000 segment consumers mostly depend on offline sources of information, especially word of mouth, to make their handset purchase. Among users preferring itel for their next purchase, most (65%) rely on word-of-mouth recommendations from friends and family.  With the least number of dissatisfied users and strong recommendations from current users, itel is the most preferred brand in terms of recommendations from friends and family. This gives itel a solid momentum in terms of growth and presence.”


The study was conducted in India using offline face-to-face interviews with a heterogeneous group of mobile users from sub INR 8,000 (sub-$100 approximately) price segment. With a total sample size of 1,575, responses were collected using the quota sampling methodology for a better representation of the universe as per the current smartphone brand share in the market. We expect the results to have a statistical precision of +/- 4%.

This survey was commissioned to better understand the brand’s presence in the sub-INR 8,000 (sub-$100 approximately) mobile phone market of India.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Tarun Pathak

Arushi Chawla

Counterpoint Research

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Our Q4-2019 Market Monitor report has been published. We release one Infographic in each quarter to summarize the handset and smartphone market activities in a single page.

Some quick observations from the smartphone market:

  • Global smartphone shipments grew 2% YoY reaching 401.1 million units in Q4 2019.
  • MEA (14% YoY) grew the highest, followed by India (12% YoY).
  • World’s largest smartphone market, China, declined 10% YoY. This was its 8th consecutive quarterly decline.
  • After two years, Apple gained the top spot in the global smartphone market. Shipments for Apple grew 10% YoY even without a 5G variant.
  • Huawei* registered a decline (6% YoY) for the first time after 2017 Q4.  The aggressive shipments in China, where it grew 12% YoY, was unable to offset the global decline in all the other regions.
  • Xiaomi grew 28% YoY even though it declined 17% YoY in China. The overseas expansion over the last few years has made it less dependent on its home market.
  • Vivo surpassed OPPO for the first time since 2015 Q2, to become the 5th largest brand in 2019 Q4. OPPO slipped out of the top 5.
  • Samsung’s growth slowed down to 1% YoY during the quarter.

Counterpoint INFOGRAPHIC Q4-2019 Smartphone (Only Image)

Some quick observations from the feature phone market:

  • Global feature phone shipments declined 12% annually reaching  105.5 million units in Q4 2019.
  • MEA captured over 38% of the global feature phone market. Feature phone shipments in MEA grew 10% YoY during the quarter.
  • Transsion Group led the global feature phone market capturing over 29% of the market share.
  • Alcatel led the feature phone market in North America driven by the GoFlip series.
  • KaiOS continued to expand into Africa and entered the Pakistan market as well by launching the cheapest smart feature phone globally (11 USD).

Counterpoint INFOGRAPHIC Q4-2019 Feature Phone (Only Image)

Use the button below to download the PDF version of the Q4 2019 Infographic:

Middle East and Africa’s Smartphone Market Clocks Second-Highest Growth Rate in Q2 2019

  • Samsung led the smartphone market and became one of the fastest-growing OEMs in the region.
  • Transsion Group continues to consistently dominate the overall handset market capturing over one-third of the shipment share
  • Apple slips out of top 5 brands in the region 

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –

Sep 5, 2019

 The smartphone market in the Middle East and Africa (MEA) grew 6% year-on-year (YoY) in Q2 2019, according to Counterpoint’s Market Monitor service. The growth rate of the smartphone market in the region is second only to India, making it an important market for OEMs. The adoption of smartphones in the region is increasing as more feature phone users transition to smartphones. The market is likely to grow above the global average in the coming years.

Samsung captured over one-fourth of the market share in the smartphone market, mainly due to the success of A and M series. After six consecutive quarters of shipments decline in the region, the OEM grew 26% YoY, making it one of the fastest-growing smartphone brand in the region. Samsung commands a strong brand power in the region, and its new devices with attractive design, aggressive specifications, and competitive pricing have fuelled its growth.

Closely following Samsung was the Transsion Group. The Shenzen-based company’s brands itel, Infinix, and Tecno captured close to 20% of the smartphone market. The brands dominate the feature phone segment with a 56% share. Overall, Transsion Group has more than one-third of the shipment share in the handset market.

Commenting on the leadership of Transsion Group in the handset segment, Tarun Pathak, Associate Director at Counterpoint Research, said, “Transsion has optimized its products to cater to the local needs, which is one of the key reasons for its success. It has collaborated with various industry players to develop technologies like cameras catering to users with dark complexion, low-cost fast-charging solutions, and AI to optimize battery usage, thus addressing local market challenges. The OEM has also developed a robust supply chain in the region catering to even the remote areas of Africa. Transsion also has a popular mobile internet ecosystem in Africa with its media platform and other OTT applications.”

Besides smartphones, close to 40% of the shipments during the quarter were feature phones. As of 2018, smartphone adoption of smartphone in the MEA region was still below 50%. In sub-Saharan Africa, smartphone adoption is only 36%. Factors like poverty, a dearth of infrastructure, literacy barrier and other socio-economic factors makes the low-cost devices suitable for a large section of users in the region. Over 60% of the smartphones sold in the region during the quarter were below US$100 price band (wholesale price).

Commenting on the affordable device Varun Mishra, Research Analyst at Counterpoint Research, said, “Affordable devices remain a key to extend connectivity to users, especially in Africa. The two large telcos in Africa, MTN and Orange, both have launched their 3G smart feature phones running on KaiOS. The devices are bundled with various internet offers to increase digital ecosystem adoption in the region. However, currently on an average, these devices cost around US$25, and there is still a need to reduce the prices of these devices to fuel rapid adoption. Ideally, a smart feature phone should be priced as close to the feature phone as possible. This will provide a substantial incentive for the first-time mobile phone user to consider a smart feature phone instead of a feature phone, as well as feature phone users to upgrade to a smart feature phone. “


           Exhibit 1: MEA Smartphone Market Share                                       MEA Feature Phone Market Share

Source: Counterpoint Research Market Monitor Q2 2019

Market Summary:

  • The top five smartphone brands captured 55% of the market, thus indicating market consolidation.
  • Huawei, on account of US trade ban, declined 12% YoY during the quarter. The declining trend will continue as the effect of ban surfaces during Q3.
  • The shipments for Apple declined 27% YoY during the quarter. iPhones are experiencing a global decline as users continue to hold on to their device. This is the first time since Q2 2015 that Apple is out of the top five OEMs in the region.
  • MEA captured over one-third of the global feature phone shipments, making it the largest market for the segment.
  • itel leads the feature phone segment in MEA, capturing over one-third of the market. The shipments for itel feature phones grew 1% YoY, bucking the declining trend of the segment.
  • With the launch of MTN Smart and Orange Sanza, the KaiOS powered feature phones, the popularity of smart feature phone segment in Africa is rising.


The comprehensive and in-depth Q2 2019 Market Monitor is available for subscribing clients. The service includes handset shipments from 140+ brands across 60+ countries quarterly.  Please feel free to contact us at press(at) for further questions regarding our in-depth latest research, insights or press inquiries.

Analyst Contacts:

Tarun Pathak 

Varun Mishra 

Follow Counterpoint Research

You can also visit our Data Section (updated quarterly) to view smartphone market share Globally and from the USAChina and India

KaiOS Eyes Global Expansion but Replicating India’s Success Would Be a Challenge

KaiOS has been the talk of the town after emerging as the third largest mobile operating system after Android and iOS. According to KaiOS technologies, it has garnered 100 million users over the past few years, with much of its success coming from India with the Reliance JioPhone.

India remains the largest market for KaiOS. However, the smart feature phone segment is now saturating in India. The growth rate is slowing down, and Reliance Jio’s focus may also shift to smartphones, to capitalize on the upgrade ready user-base. Therefore, a natural step for KaiOS is to expand into other emerging markets, especially those that have a similar demographics/economy.

Africa and LATAM are such markets. In LATAM, KaiOS entered the Brazilian market through the launch of Positivo P70S and Multilaser ZAPP. Later this year, it is likely to expand to other markets like Mexico. However, Africa offers a more compelling proposition.

According to Counterpoint, nine out of the top 20 countries with the highest potential for smart feature phones are in Africa. Earlier this year, KaiOS announced MTN Smart, marking its foray into the African market. Soon after the MTN Smart, it launched the Orange Sanza. Launch of both devices was through operator partnerships, something that KaiOS prioritizes. Not only is Orange partnering KaiOS to launch smart feature phones in Africa, but the operator has also participated in a Series B funding.

Partnerships with operators will help KaiOS make further inroads in African countries. In fact, through operator partnerships, KaiOS devices are already available in 22 countries across Africa. Clearly, Africa will be the next most important market for KaiOS after India. However, it might be a bit more challenging for KaiOS to replicate the scale and success it gained in India.

Among other use-cases like elderly population, and users looking for easy form-factors, the primary target consumers for KaiOS are the first-time high-speed internet users. These are mostly bottom of the pyramid population, which either has never experienced a mobile phone or are using traditional feature phones with limited data connectivity. Such users need to be shown the positive effects of data services to prepare them for monetization. Data needs to become a habit for the consumer before it opens up revenue opportunities. Hence, keeping the initial cost of accessibility low and developing relevant content should be the prime focus, and if successfully achieved, it will be pivotal for growth.

In India, the JioPhone’s launch price was US$20, which was refundable if the user returned the device after three years. This made the device almost free. It was also coupled with dirt cheap data rates. Further, there were a host of services at cheap prices which democratized internet usage in India.

Exhibit: Reliance Jio Ecosystem

The vertical integration of Reliance Jio and the application ecosystem played a key role in customer stickiness. This translated into an increased average revenue per user (ARPU). The same will be very difficult for any other operator around the globe to replicate.

In order to achieve scale in the African market, smart feature phones need to be cheaper than even US$20. Entry-level smartphones, available at a marginally higher price in Africa, can be a viable alternative. Also, smartphones remain a more aspirational product for Africans. KaiOS powered device has been launched at a lower price in other countries like Indonesia, where the device was launched as US$7 offering a much higher value proposition to consumers.

There is also a need for content and productivity applications to build user stickiness for the system. KaiOS has already been successful by striking the right partnerships across many players in the value chain and key partners. For content and productivity applications, developer partnerships are equally important. Many users are new to the app ecosystem. This offers a promising new market for developers – especially if they can develop relevant local content and services, something often missed by larger app developers in the mainstream app stores. Mobile payments could be one of the avenues which can be explored, especially in Africa.

The smart feature phone has carved out its place between a feature phone and a smartphone, as an affordable solution for high-speed internet access. With the success of JioPhone in India, many mobile industry stakeholders have renewed interest in tapping into the potential opportunity of upgrading feature phone users with a smart feature phone. The success of the segment depends on the balance of the three most important factors – device affordability, internet affordability, and relevant content. Partnerships among device OEMs, operators, KaiOS, and other ecosystem players will remain a key to achieve this balance. The smart feature phone ecosystem represents a US$28 billion revenue opportunity over the next three years – a number too significant to be ignored.


Please click here for our in-depth analysis of the smart feature phone segment.


Increasing Smartphone Adoption Drives Growth in Middle East and Africa

  • MEA Smartphone market grew 6% YoY in Q1 2019.
  • Over 70% of the total smartphones sold in the region were in the sub-US$150 price segment.
  • There is an increasing transition of users from feature phones to smartphones.

 New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –May 30, 2019

 The smartphone market in the Middle East and Africa (MEA) grew 6% year-on-year (YoY) in Q1 2019, while the feature phone segment declined 6% (YoY), according to Counterpoint Market Pulse. Overall handset market grew 1% YoY.

Commenting on the smartphone market growth, Tarun Pathak, Associate Director at Counterpoint Research, said, “There is an increasing transition of users from feature phones to smartphones in the region. Availability of affordable devices, the growing ecosystem of refurbished devices, and increasing internet penetration are fuelling the switch to smartphones, especially in the African Region. In the larger African countries, like Nigeria and Kenya, smartphones remain the primary medium to access internet services. There is also increasing popularity of the mobile money ecosystem, which is driving further smartphone adoption.  Price remains a key factor for smartphone adoption. Over 70% of the total smartphones sold in the region were in the sub- US$150 price segment. “

Transsion Group dominates the handset market in MEA, commanding a 19% market share in the smartphone segment and a 71% market share in the feature phone segment. Affordability and localized offerings underline the dominance of the Transsion’s brands. Features like longer battery life and optimized cameras for local needs make them a popular option. The brands also have a deep distribution network in Africa.

A large section of the population in MEA still uses 2G feature phones. Commenting on the feature phone segment, Varun Mishra, Research Analyst at Counterpoint Research said,” Although declining, feature phone remained relevant in the MEA and contributed to 34% of the total handsets sold during the quarter. In terms of shipments, MEA has surpassed India to become the largest feature phone market globally in 2019. Factors like the dearth of infrastructure, affordability, literacy, and ease of use continue to make feature phones a viable option in the region.”

MTN and Orange announced smart feature phones running on KaiOS in the African market for as low as US$20. Commenting on the smart feature phone segment, Varun Mishra added, “A smart feature phone would help users transition from 2G to 3G/4G in an affordable manner with minimal changes in the form-factor. The network transition and application ecosystem would open new monetization avenues for telecom players and increase the overall average revenue per user (ARPU) of operators in the competitive African market.  Smart feature phone would serve as the middle ground between the feature phones and smartphones. Although feature phone shipments would decline in the future, the smart feature phone segment remains poised for growth. Many users are likely to access high-speed internet first time through a smart feature phone. Fostering a partnership model among ecosystem players, like KaiOS, would drive the initial access cost down, which would help increase internet penetration in the region and thus provide long-term profitability.”


              Exhibit 1: MEA Smartphone Market Share                  MEA Feature Phone Market Share

Source: Counterpoint Research Market Pulse Q1 2019


Market Summary:

  • The top five smartphone brands captured 49% of the market.
  • Samsung led the smartphone market by volume, capturing one-fifth of the total smartphone market in Q1 2019. However, the sell-through for the brand declined 23% YoY in MEA.
  • Huawei was one of the fastest growing brand driven by the Y9 and P20 Lite. The brand grew 27% YoY. HONOR also grew 122% YoY, albeit small base. However, the future for both Huawei and HONOR remains uncertain amid the current US-China trade war.
  • Sub-US$100 segment captured 55% of the total smartphone market. Premium segment (US$400 and above) captured single-digit market share in the price-sensitive MEA market.
  • Close to one-fifth of the smartphones in the MEA region are still 3G. Although the transition is happening from 3G to 4G, as 4G capable handsets become more affordable and network availability increases.
  • Feature Phones contributed to over one-third of the total sell-through in Q1 2019.
  • iTel and Tecno lead the feature phone segment together, capturing over 70% of market share. Tecno defied the feature phone segment decline and grew 15% YoY.

The comprehensive and in-depth Q1 2019 Market Pulse is available for subscribing clients. Please feel free to contact us at press(at) for further questions regarding our in-depth latest research, insights or press inquiries.


Analyst Contacts:

Tarun Pathak

Varun Mishra

Follow Counterpoint Research

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